10 Best Internet of Things (IoT) Stocks to Buy

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 219

Meta Platforms, Inc. (NASDAQ:META), the tech giant formerly known as Facebook, has been taking significant steps to leverage artificial intelligence (AI) to improve its social media platforms. The company’s recent introduction of AI-powered image editing tools and new chat stickers on Instagram is a prime example of this strategy.

Meta Platforms, Inc. (NASDAQ:META) has demonstrated impressive financial performance over the past decade, with a compound annual revenue growth rate of 29.7%. As the global digital ad market is going to expand significantly, reaching over $1 trillion by 2030, the company is well-positioned to capitalize on this growth. Meta Platforms, Inc. (NASDAQ:META) has maintained an average operating margin of 34.8% in the past five years. These strong financials are fueled by cost-cutting measures and a focus on operational efficiency.

Meta’s substantial cash reserves of $58.1 billion and free cash flow generation of $10.9 billion reported during the most recent quarter enable it to invest aggressively in AI initiatives. The stock has received a consensus rating of “Strong Buy” from analysts.

Here’s what Mar Vista Investment Partners, LLC said about Meta Platforms, Inc. (NASDAQ:META) in its Q2 2024 investor letter:

“During the quarter, we established new investments in Broadcom and Meta Platforms, Inc. (NASDAQ:META). We previously divested from Meta during a period of stagnant advertising growth and the company’s initial, significant investment in the metaverse project. At that time, investors appeared complacent to the risks associated to an increasingly competitive landscape, and the Street’s robust financial expectations as the company transitioned towards monetizing short-format video (Reels). The subsequent decline in Meta’s stock price during 2022 reflected these concerns.